Release Date: March 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you comment on the competitive landscape for your limited distribution drug (LDD) business and pipeline? A: Jon Rousseau, CEO: There hasn't been a significant shift in the market. Our team's focus on operational process and service levels has been key. We've seen a trend towards narrowing networks, and we're pleased to be a strong partner in this process. Our recent Net Promoter Scores were very high, indicating strong satisfaction.
Q: What is the growth trajectory for your Infusion business, and what are the margin opportunities? A: Jon Rousseau, CEO: We've focused on operational improvements and standardization across our Infusion pharmacies. We expect the business to grow about 20% this year, with a focus on driving more referrals and improving turnaround times, which are now best-in-class.
Q: Can you provide an update on your internal cost-saving initiatives and their impact on margins? A: Jon Rousseau, CEO: We have over 100 ongoing projects focused on procurement, workflow augmentation, and automation. These initiatives have contributed to EBITDA growth and are expected to continue providing benefits in 2025.
Q: How are you approaching growth in Home Health and Hospice, and what are the development opportunities? A: Jon Rousseau, CEO: We aim to double our Home Health and Hospice revenue in the next five years. We're focusing on quality improvements and engaging with innovative payers for enhanced rates. Our star ratings have significantly improved, which supports our growth strategy.
Q: What are your expectations for growth sustainability, especially after the community living divestiture? A: Jon Rousseau, CEO: We have a track record of double-digit growth, and the divestiture will enhance our growth rate. We expect to maintain similar growth rates in the future, contingent on external factors like the IRA.
Q: How are you managing staffing and wage inflation across your properties? A: Jon Rousseau, CEO: We focus on recruiting, onboarding, training, and retention. Our retention numbers are improving, and we continue to invest in compensation and benefits to make our service lines attractive workplaces.
Q: Can you discuss your approach to M&A and de novo efforts? A: Jon Rousseau, CEO: We plan to spend around $100 million on M&A this year and continue our de novo strategy with 10 to 15 new locations across various service lines, which provide strong ROI over time.
Q: What are the potential impacts of the Inflation Reduction Act (IRA) on your business? A: Jon Rousseau, CEO: The IRA's focus on lowering out-of-pocket costs is beneficial for patient access to medications. However, we need to see how reimbursement mechanisms for certain drugs play out, which could impact margins slightly.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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